Bombardier Shares Slide as Trump Threatens U.S. Ban Amid Escalating Trade Tension

Dow Jones09-08 23:51
 
 

Bombardier shares fell after President Trump threatened to block U.S. sales of its aircraft unless it shifts manufacturing south of the border, despite Bombardier's existing large U.S. footprint.

Shares traded 4.7% lower at 300.25 Canadian dollars ($217.34).

The threat comes despite Bombardier's substantial footprint in the U.S., where the company said it spends more than $2.5 billion with suppliers each year. Trump's rhetoric marks an escalation in cross-border tensions, arriving just hours after Canada's $27.6 billion in retaliatory counter-tariffs officially took effect following the collapse of bilateral trade talks.

In a Labor Day post on Monday, President Trump on Truth Social accused the company of treating the U.S. like a "piggybank," while taking advantage of U.S. buyers, airports, and infrastructure. "NO MORE SELLING BOMBARDIER IN THE UNITED STATES! Their products aren't good enough!" Trump wrote, urging followers to "Buy American. Fly on American airliners."

Bombardier in a response on Monday said it uses American-made components such as engines, avionics and many more key systems for its jets. The company also said its American workers are based across the U.S., with sites in Kansas, Texas, Arizona, Florida, Connecticut, Illinois, Delaware, California, Washington, D.C., and New Jersey, as well as overall direct employment presence in more than 20 states.

"Bombardier aircraft create tens of thousands of U.S. jobs through the company's growing American footprint as well as within its supply chain made up of approximately 2,800 American companies across 47 states," the company said in response to Trump's social media post.

It isn't the first time Trump has set his sights on Canadian aerospace industry, having previously threatened to decertify Canadian aircraft and set levies on imports in retaliation for what he described as the country's refusal to certify U.S.-made Gulfstream jets.

 
 

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